20 Easy Ways Trucking Companies Can Increase Profit Margins This Month
You’re a great truck driver. You know how to choose the best routes, are always reliable and deliver on time, every time. But it takes…
What is Operating Margin?
A measure of profitability that tells the proportion of revenue that will eventually become profit for a company. The formula for calculating operating margin is Operating Income divided by Revenue. As such, Operating Margin is a measurement of what proportion of a company’s Revenue is left over, before taxes and other indirect costs such as interest expense, nonrecurring items (such as accounting adjustments, legal judgments, or one-time transactions), and other income statement items not directly related to a company’s core business operations. Also sometimes referred to as Return on Sales.
RELATED articles
OTHER TERMS BEGINNING WITH "O"
- Operating Agreement
An operating agreement is a document describing how a limited liability company (LLC) will carry out business obligations between its owners. Many states in the United States require an LLC to have an operating agreement. LLCs operating without an operating…
- Operating Income/Operating Profit
When analyzing staffing firms, Operating Income is regarded as a good measure of ongoing business performance as it calculates profit before items such as taxes and other indirect costs are included. Operating Income is frequently referred to by the acronym…
- Owner/Operator
A truck driver who owns and operates their semi-trailer truck.